Required information [The following information applies to the questions displayed below.] Mott Company has a line of credit with Bay Bank. Mott can borrow up to $410,000 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the year. Mott agreed to pay interest at an annual rate equal to 1 percent above the banks prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Mott pays 7 percent (6 percent + 1 percent) annual interest on $60,000 for the month of January. Month Amount Borrowed or (Repaid) Prime Rate for the Month, % January $ 60,000 6 February 42,000 6 March (30,000 ) 7 April through October No change No change November (21,000 ) 7 December (15,000 ) 6 Mott earned $26,000 of cash revenue during the year.

! Required information [The following information applies to the questions displayed below.] Mott Company has a line of credit with Bay Bank. Mott can borrow up to $410,000 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the year. Mott agreed to pay interest at an annual rate equal to 1 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Mott pays 7 percent (6 percent +1 percent) annual interest on $60,000 for the month of January. Month January February March April through October November December Amount Borrowed or (Repaid) $ 60,000 42,000 (30,000) No change (21,000) (15,000) Prime Rate for the Month, % 6 6 7 No change 7 6 Mott earned $26,000 of cash revenue during the year. Required a. Organize the information in accounts under an accounting equation. (Round your answers to the nearest whole dollar amount. Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require entry.) MOTT COMPANY Effect of Events on the Accounting Equation Assets Liabilities Stockholders' Equity Account Titles for Cash Note Retained Retained Earnings Payable Earnings Event 11 January January February February March March April May June July August September October November November December December Revenue Bal. + + + + + + + + + + + + + + + + + + + 0 0 + 0